Economy

European Union registers 'highest economic growth rate in 10 years'

European Union registers 'highest economic growth rate in 10 years'

Luxembourg's economic growth will outpace the eurozone's in 2017 and the following two years, the European Commission has predicted, citing sustained employment creation, private consumption and increased domestic demand.

Strong export growth, particularly in services, and a fall in imports related to the contraction in investment is pushing up the current account surplus, which is forecast to approach 10% of GDP in 2017.

The EU economy as a whole was forecast to beat expectations with "robust" growth of 2.3% this year, up from 1.9% in the spring forecast, followed by 2.1% in 2018 and 1.9% in 2019. The Commission forecast that growth in Britain in 2019 - the country is due to leave the bloc in March of that year - would only be 1.1 percent but stressed that its forecast was just a "technical assumption of status quo" in terms of the future trading relationship between the country and the rest of the EU. The EC has forecast growth of 1.6 percent for Greece this year, with rates of 2.5 percent expected in both 2018 and 2019.

EU officials hope the dynamic economy will help ambitious reform drives by European Commission chief Jean-Claude Juncker and French President Emmanuel Macron to deepen economic integretaion in the eurozone. In its previous forecast in the spring, it had penciled in growth of 1.7 percent.

It also noted that "uncertainty continues to weigh on business investment" and the UK's GDP performance was expected to "remain subdued over the forecast horizon".

"After five years of moderate recovery, European growth has now accelerated", said Pierre Moscovici, the Commission's top economy official.

In line with robust real GDP growth and a strong labour market, and despite the reduction in taxation worth 0.2% of GDP, tax revenues are expected to continue growing.

More news: Kevin Spacey: Journalist claims actor sexually assaulted teen son

Moreover, in spite of more social spending due this year's budgetary measures, such as an increase in pensions, current expenditure growth is expected to weaken in 2018.

The surplus achieved by the Labour government also features in the report which projects it to be 0.9% by the end of 2017, but is believed to decline to 0.5% in 2018, a figure that will be sustained in 2019.

Financial sector growth strengthened in the first half of 2017, underpinned by the euro area's recovery.

The EU Commission has downgraded its expectations for United Kingdom economic growth, saying its assumptions are even based on there being no change in trading status after Brexit.

"This is for forecasting purposes only and has no bearing on the talks underway in the context of the Article 50 process".

For the whole European Union, including non-eurozone countries, growth is expected to be a "robust" 2.3 percent this year and 1.9 percent next year - compared to 1.9 percent for both years that was expected in May.


  • OnePlus 5T Won't Have Wireless Charging, OnePlus CEO Explains Why

    OnePlus 5T Won't Have Wireless Charging, OnePlus CEO Explains Why

    Their Dash Charge technology produces 20W of power which "reliably" gives a day's power in half an hour to their device. It should be easy but there is a correct way and position to efficiently charge a smartphone with wireless charging.
    Apple's next iPad will have face recognition instead of home button

    Apple's next iPad will have face recognition instead of home button

    Apple is planning to overhaul its iPad for 2018, slicing away bezels along with the TouchID fingerprint sensor. One feature of the iPhone X that won't apparently be making its way to the new iPad would be an OLED display.
    Moyes Confirmed As West Ham Boss

    Moyes Confirmed As West Ham Boss

    He told the club's official website: "I would like to welcome David to West Ham United ". But the 54-year-old Scot was sacked after less than a season in charge.
  • Demonetisation: Rahul Gandhi terms PM Modi 'democratically elected dictator'

    Demonetisation: Rahul Gandhi terms PM Modi 'democratically elected dictator'

    The Congress has become "incorrect news Congress" and the "biggest source of false news", the BJP chief said. We urgently need to empower these networks and connect them to capital and technology.
    Manafort, Gates remain under house arrest

    Manafort, Gates remain under house arrest

    Those amounts reflect money the men would have to forfeit if they failed to return to court as required. The two have pleaded not guilty.
    Nokia 5 with 3GB RAM in India for Rs 13499

    Nokia 5 with 3GB RAM in India for Rs 13499

    After the first sale on Flipkart of Nokia 5, 3GB RAM variant the phone will be available to purchase from all retail outlets. Apart from the change in the RAM, the other specifications and features of the Nokia 5 will be the same.
  • IT Raids At Jaya TV Office In Chennai

    IT Raids At Jaya TV Office In Chennai

    CNN-News18 said that friends and family members of Sasikala and Dhinakaran are being raided across four states in 187 locations. Kamaraj, recently. "If they're conducting raids for speaking against demonetisation, I'll repeat it".
    Samsung denied appeal against Apple in

    Samsung denied appeal against Apple in "Slide to Unlock" patent fight

    The patents covered some popular features on early iPhone models, such as ' Slide to unlock, ' autocorrect, and quick links. The Supreme Court has rejected Samsung's appeal of court rulings that it impermissibly copied features of Apple's iPhone.
    Target and Toys R Us stores will be open on Thanksgiving Day

    Target and Toys R Us stores will be open on Thanksgiving Day

    The Mall of America and Burnsville Center have gone further and will not open at all on Thanksgiving for the second year in a row. For instance, at Harbor Freight Tools, the 17-foot Type 1A Multi-Task Ladder was on sale for $115 during Black Friday 2015.
  • Modi, Hasina, Mamata flag-off Kolkata-Khulna friendship train

    Modi, Hasina, Mamata flag-off Kolkata-Khulna friendship train

    I hope this fine display of mutuality of our relationship will further strengthen our bilateral relations", she added. Bandhan Express, a fully air-conditioned weekly passenger train, will run between the two cities on Thursday.
    Lamar Odom collapses at a nightclub

    Lamar Odom collapses at a nightclub

    Khloe went ahead with finalizing their divorce and a year ago she started dating Cleveland Cavaliers player Tristan Thompson. So scary to see something like this, especially with a person like Lamar Odom who has always been battling addiction.
    Penn State, Michigan State resume game after weather delay

    Penn State, Michigan State resume game after weather delay

    A weather delay that lasted over three hours and a field that deteriorated quickly made things hard on the Nittany Lions. There is no restart time at this juncture, but we'll pass along an update when the game boots back up.